Melbourne

Melbourne lies within the top 10% of areas nationally in terms of population growth performance according to AreaSearch analysis of short and medium-term trends

Based on analysis of Australian Bureau of Statistics (ABS) population updates for the broader area, and new addresses validated by AreaSearch, the estimated population of Melbourne suburb is around 73,772 as of Nov 2025. This reflects an increase of 18,831 people (34.3%) since the 2021 Census, which reported a population of 54,941 people. The change is inferred from the resident population of 72,932, estimated by AreaSearch following examination of the latest Estimated Residential Population data release by the ABS in June 2024 and an additional 505 validated new addresses since the Census date. This level of population equates to a density ratio of 11,194 persons per square kilometer, which places Melbourne suburb in the top 10% of national locations assessed by AreaSearch. The suburb's 34.3% growth since the 2021 census exceeded the national average (8.9%), along with the state, indicating it as a growth leader in the region. Population growth for the area was primarily driven by overseas migration that contributed approximately 96.0% of overall population gains during recent periods, although all drivers including natural growth and interstate migration were positive factors.

AreaSearch is adopting ABS/Geoscience Australia projections for each SA2 area, as released in 2024 with 2022 as the base year. For any SA2 areas not covered by this data, AreaSearch is utilising the VIC State Government's Regional/LGA projections released in 2023 with adjustments made employing a method of weighted aggregation of population growth from LGA to SA2 levels. Growth rates by age group from these aggregations are also applied across all areas for years 2032 to 2041. As we examine future population trends, a significant population increase in the top quartile of national statistical areas is forecast, with Melbourne suburb expected to expand by 29,555 persons to 2041 based on aggregated SA2-level projections, reflecting an increase of 38.9% in total over the 17 years.

The level of residential development activity in Melbourne was found to be higher than 90% of real estate markets across the country

AreaSearch analysis of ABS building approval numbers indicates Melbourne has received around 219 dwelling approvals annually over the past five financial years ending FY-25. This totals an estimated 1,096 homes. In FY-26 so far, 52 approvals have been recorded. On average, each new dwelling constructed between FY-21 and FY-25 accommodates approximately 8.4 new residents annually.

Commercial approvals registered in this financial year amount to $1,093.4 million, indicating robust local business investment. New building activity shows a trend towards denser development, with 1.0% detached dwellings and 99.0% attached dwellings, appealing to downsizers, investors, and entry-level buyers. Melbourne reflects a developing area, with around 179 people per approval.

Latest AreaSearch quarterly estimate projects Melbourne's population growth to reach 28,693 residents by 2041. If current development rates continue, housing supply may not keep pace with population growth, potentially increasing competition among buyers and supporting stronger price growth.

Melbourne has very high levels of nearby infrastructure activity, ranking in the top 10% nationally

Changes to local infrastructure significantly impact an area's performance. AreaSearch has identified 265 projects that could affect the region. Notable initiatives include the Metro Tunnel Project, Greenline Project along the Yarra River, and the Level Crossing Removal Project. The following details projects likely to have the greatest relevance.

Professional plan users can use the search below to filter and access additional projects.

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The employment environment in Melbourne shows above-average strength when compared nationally

Melbourne has a highly educated workforce with professional services well represented. The unemployment rate was 3.9% in the past year, with an estimated employment growth of 6.8%.

As of June 2025, 51,897 residents were employed, with an unemployment rate of 4.6%, 0.7% below Greater Melbourne's rate. Workforce participation was 68.3%, compared to Greater Melbourne's 64.1%. Key industries included accommodation & food, professional & technical services, and health care & social assistance. The area showed strong specialization in accommodation & food (2.9 times the regional level) but under-representation in construction (3.6% vs Greater Melbourne's 9.7%).

There were 4.9 workers per resident as of the Census, indicating it functions as an employment hub. Between June 2024 and June 2025, employment increased by 6.8%, labour force by 7.1%, resulting in a slight unemployment rise of 0.2 percentage points. In comparison, Greater Melbourne recorded employment growth of 3.5% and unemployment rose by 0.5 percentage points over the same period. Jobs and Skills Australia's national employment forecasts from Sep-22 project national employment growth of 6.6% over five years and 13.7% over ten years. Applying these projections to Melbourne's employment mix suggests local employment should increase by 7.0% over five years and 14.0% over ten years, though these are simple weighted extrapolations for illustrative purposes only.

Income figures position the area below 75% of locations analysed nationally by AreaSearch

Melbourne had a median income among taxpayers of $42,625 during financial year 2022. The average income was $67,300 in the same period. These figures are slightly higher than the national averages of $54,892 and $73,761 respectively for Greater Melbourne. Based on a Wage Price Index growth rate of 12.16% since financial year 2022, estimated median income as of September 2025 would be approximately $47,808, while the average is projected to reach around $75,484 by that date. According to the 2021 Census, personal income in Melbourne ranks at the 61st percentile with a weekly income of $864, and household income is at the 32nd percentile. Income distribution data shows that 31.5% of locals (23,238 people) fall within the $1,500 - 2,999 category, which aligns with regional levels where this cohort represents 32.8%. Housing affordability pressures are severe in Melbourne, with only 76.8% of income remaining after housing costs, ranking at the 22nd percentile. The area's SEIFA income ranking places it in the 8th decile.

Melbourne features a more urban dwelling mix with significant apartment living, with above-average rates of outright home ownership

The dwelling structure in Melbourne, as per the latest Census, consisted of 0.1% houses and 99.9% other dwellings (semi-detached, apartments, 'other' dwellings). In contrast, Melbourne metro had no recorded houses or other dwellings. Home ownership in Melbourne stood at 13.1%, with mortgaged properties at 13.6% and rented dwellings at 73.3%. The median monthly mortgage repayment was $1,800, aligning with the Melbourne metro average. The median weekly rent was $381, while Melbourne metro had no recorded figures for rents or houses. Nationally, Melbourne's mortgage repayments were lower than the Australian average of $1,863, and rents exceeded the national figure of $375.

Melbourne features high concentrations of group households and lone person households, with a median household size of 1.7 people

Family households account for 37.5% of all households, including 5.7% couples with children, 25.6% couples without children, and 3.1% single parent families. Non-family households constitute the remaining 62.5%, with lone person households at 47.2% and group households comprising 15.3%. The median household size is 1.7 people.

Melbourne shows strong educational performance, ranking in the upper quartile nationally when assessed across multiple qualification and achievement indicators

Melbourne's residents aged 15 and above have a notably higher university qualification rate of 61.1% compared to the national average of 30.4% and Victoria's average of 33.4%. This educational advantage is evident in various qualifications: bachelor degrees at 37.7%, postgraduate qualifications at 20.6%, and graduate diplomas at 2.8%. Vocational pathways account for 18.3%, with advanced diplomas at 11.0% and certificates at 7.3%. Educational participation is high, with 42.2% of residents currently enrolled in formal education.

This includes 25.4% in tertiary education, 1.7% in primary education, and 1.5% pursuing secondary education. As of a specific date, 11 schools serve a total of 6,457 students in the area, which demonstrates significant socio-educational advantages and academic achievement (ICSEA: 1102). The educational mix includes 5 secondary schools and 6 K-12 schools.

Transport servicing is high compared to other areas nationally based on assessment of service frequency, route connectivity and accessibility

Melbourne has 202 active public transport stops. These include train, light rail, and bus services. There are 92 individual routes operating collectively providing 55,253 weekly passenger trips.

Residents have excellent accessibility to these stops, with an average distance of 96 meters from their nearest stop. The service frequency averages 7,893 trips per day across all routes, resulting in approximately 273 weekly trips per individual stop.

Melbourne's residents boast exceedingly positive health performance metrics with very low prevalence of common health conditions across all age groups

Melbourne's health outcomes show excellent results, with a very low prevalence of common health conditions across all age groups.

Approximately 53% (~39,423 people) of the total population has private health cover. Mental health issues and asthma are the most prevalent medical conditions in the area, affecting 6.9 and 5.4% of residents respectively. A significant majority, 83.6%, report being completely clear of medical ailments compared to 0% across Greater Melbourne. The percentage of residents aged 65 and over is 6.1% (4,500 people). Health outcomes among seniors are particularly strong, broadly aligning with the general population's health profile.

Melbourne is among the most culturally diverse areas in the country based on AreaSearch assessment of a range of language and cultural background related metrics

Melbourne has a diverse population, with 60.2% speaking a language other than English at home and 70.6% born overseas by 31 December 2016. Christianity is the dominant religion in Melbourne, making up 25.6%. Buddhism's representation is notably higher at 10.2%, compared to None% across Greater Melbourne as of that date.

Top ancestry groups include Chinese (27.1%), Other (18.5%), and English (13.3%). Korean (2.1%), Spanish (0.8%), and Indian (5.9%) groups are overrepresented in Melbourne compared to regional averages.

Melbourne hosts a very young demographic, ranking in the bottom 10% of areas nationwide

Melbourne's median age is 28, which is lower than Greater Melbourne's figure of 37 and Australia's median age of 38. The age profile reveals that the 25-34 year-olds are particularly prominent, making up 39.7% of the population, while the 5-14 group is comparatively smaller at 1.6%. This concentration of 25-34 year-olds is significantly higher than the national average of 14.5%. Post-2021 Census data indicates a rejuvenation with the median age falling from 29 to 28 years. Key changes show the 15-24 age group grew from 24.5% to 27.6%, and the 25-34 cohort increased from 38.3% to 39.7%. Conversely, the 35-44 cohort declined from 14.8% to 13.6%. Population forecasts for 2041 indicate substantial demographic changes for Melbourne, with the 25-34 cohort projected to grow by 37%, adding 10,783 residents to reach a total of 40,071.